Note 10 - Losses and LAE (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Liability for Unpaid Claims and Claim Adjustment Expenses, by Segment [Table Text Block]

Our reserve for losses and LAE, at the end of each period indicated, consisted of:



(In thousands)	March 31, 2018		December 31, 2017
Mortgage insurance loss reserves	$	485,192	$	507,588
Services loss reserves (1)	3,464		—
Total reserve for losses and LAE	$	488,656	$	507,588

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(1)	This full amount is included in the reinsurance recoverables reported in other assets in our condensed consolidated balance sheet, and relates to the acquisition of EnTitle Direct, completed on March 27, 2018.

Schedule of Liability for Future Policy Benefits, by Product Segment [Table Text Block]

The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated:



(In thousands)	March 31, 2018		December 31, 2017
Reserves for losses by category:
Prime	$	274,595	$	285,022
Alt-A and A minus and below	158,612		170,873
IBNR and other	17,164		16,021
LAE	13,440		13,349
Reinsurance recoverable (1)	8,953		8,315
Total primary reserves	472,764		493,580
Pool	11,387		12,794
IBNR and other	226		278
LAE	319		356
Reinsurance recoverable (1)	20		35
Total pool reserves	11,952		13,463
Total First-lien reserves	484,716		507,043
Other (2)	476		545
Total reserve for losses	$	485,192	$	507,588

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(1)	Represents ceded losses on captive reinsurance transactions, the QSR Transactions and the Single Premium QSR Transactions.


(2)	Does not include our Second-lien premium deficiency reserve that is included in other liabilities.

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

The following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE but excluding our Second-lien premium deficiency reserve, for the periods indicated:



	Three Months Ended March 31,
(In thousands)	2018		2017
Balance at beginning of period	$	507,588	$	760,269
Less: Reinsurance recoverables (1)	8,350		6,851
Balance at beginning of period, net of reinsurance recoverables	499,238		753,418
Add: Losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	36,516		51,447
Prior years	391		(4,316		)
Total incurred	36,907		47,131
Deduct: Paid claims and LAE related to:
Current year (2)	226		42
Prior years	59,700		82,046
Total paid	59,926		82,088
Balance at end of period, net of reinsurance recoverables	476,219		718,461
Add: Reinsurance recoverables (1)	8,973		7,708
Balance at end of period	$	485,192	$	726,169

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(1)	Related to ceded losses recoverable, if any, on captive reinsurance transactions, the QSR Transactions and the Single Premium QSR Transactions. See Note 7 for additional information.


(2)	Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.